A facial recognition system developed by Tsinghua Unigroup at the first Smart China Expo in Chongqing on August 23, 2018. Unigroup defaulted on a US$450 million keepwell-backed bond. Photo: Reuters A facial recognition system developed by Tsinghua Unigroup at the first Smart China Expo in Chongqing on August 23, 2018. Unigroup defaulted on a US$450 million keepwell-backed bond. Photo: Reuters
A facial recognition system developed by Tsinghua Unigroup at the first Smart China Expo in Chongqing on August 23, 2018. Unigroup defaulted on a US$450 million keepwell-backed bond. Photo: Reuters
Bonds

Shanghai court’s nod to Hong Kong ruling on keepwell clause bodes well for offshore creditors of defaulting Chinese bonds

  • Keepwell clauses are undertakings by Chinese companies to guarantee the solvency and financial well-being of their units when they sell bonds in offshore markets
  • First seen in 2012 before China developed a tolerance for such guarantees, keepwell provisions were the workarounds that helped companies raise capital

Topic |   Bonds
A facial recognition system developed by Tsinghua Unigroup at the first Smart China Expo in Chongqing on August 23, 2018. Unigroup defaulted on a US$450 million keepwell-backed bond. Photo: Reuters A facial recognition system developed by Tsinghua Unigroup at the first Smart China Expo in Chongqing on August 23, 2018. Unigroup defaulted on a US$450 million keepwell-backed bond. Photo: Reuters
A facial recognition system developed by Tsinghua Unigroup at the first Smart China Expo in Chongqing on August 23, 2018. Unigroup defaulted on a US$450 million keepwell-backed bond. Photo: Reuters
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